If you want financial stability, you need to save money and repair your credit. One thing without another is not going to help you. The second you run out of savings, your credit will likely be affected. If you can’t turn to credit in emergencies, your savings will be affected. You need to make sure that you can both save money and repair your credit at the same time if you want true financial stability.

Figure Out a New Budget

The first thing you need to do is take an honest look at your expenses. Itemize all of your income and your expenses and look at the bottom line. You will need to apply a certain amount of money to savings and a certain amount of money to debt. If you don’t have the money to save or pay down debt, you will need to reevaluate your entire budget and find areas where you can cut your costs.

Always Be Saving

They say that you should always pay yourself first, and this is true. If you have the income to do so, you need to be putting it into savings. Retirement savings, in particular, needs to be a budget item. You should not have discretionary spending such as entertainment spending if you are not saving for your future and your retirement.

Cut Extra Costs

If you need to cut your costs you will need to think critically about each individual expense and how it can be improved. There are a few things that you can consider that are significant but don’t alter your life significantly, such as ditching a cable package and using streaming video instead. Remember that there are many things that you simply don’t need to do, such as eating out or having an expensive car.